Hydraulic parts essential to modern equipment manufacturing are largely produced in China, Germany, Italy, the United States and Japan. In 2018, the global hydraulic market was worth approximately ?29.9 billion, of which China made up at least 25% and ranked second worldwide.
Hydraulic parts are mostly used in mobile machinery, industrial machinery and large-sized equipment. Especially, construction machinery consumes the overwhelming 30-40% hydraulic parts. Since 2017, China’s construction machinery industry has recovered, bringing higher demand for hydraulic parts. The data shows that sales volume of construction machinery such as excavators and loaders in China without exception saw double-digit growth in 2018, and it is expected to sustain growth momentum this year, from which China’s hydraulic industry will benefit greatly and hydraulic sales will outnumber RMB63 billion in 2019.
According to product classification, key components represented by cylinders, pumps and valves in China’s hydraulic system hold a combined share of as high as more than 60%. The hydraulic pumps and valves are more difficult than cylinders technically, and the market is firmly occupied by Bosch-Rexroth, Eaton, Kawasaki Heavy Industries, HUSCO and Tongmyung Heavy Industries.
At present, Bosch-Rexroth, Eaton, Kawasaki Heavy Industries, Parker Hannifin and other big names control the world’s most advanced hydraulic manufacturing technologies and monopolize the high-end hydraulic market. China relies on import of high-end hydraulic components (variable piston pumps, motors, and multi-way valves (development difficulty in order); except for high-pressure cylinders which can be domestically produced) from Kawasaki Heavy Industries, Bosch-Rexroth, and HUSCO. To bring localization of high-end hydraulic products into a reality, Jiangsu Hengli Hydraulic, Shandong Zhongchuan Hydraulic, AVIC Liyuan Hydraulic, Taiyuan Heavy Machinery Group Yuci Hydraulics and other companies have intensified R&D and production, and have made breakthroughs in the field of excavation.
Also, Chinese companies have become more competitive by setting up factories overseas and acquiring foreign companies, for instance, Weichai Power acquired Linde Hydraulics, Jiangsu Hengli Hydraulic took over the hydraulic piston pump business of HAWE In-Line.
Global and China Hydraulic Industry Report, 2019-2025 by ResearchInChina highlights the following:
Global hydraulic industry scale, regional pattern (including the status quo in the United States and Germany), corporate pattern, etc.;
Chinese hydraulic industry (policies, market size and structure, import and export, key products (hydraulic cylinders, hydraulic pumps and valves), key enterprises and aftermarket);
Chinese construction machinery and hydraulic parts markets (status quo, key enterprises, future trends, etc.);
7 global and 20 Chinese key hydraulic enterprises (operation, hydraulic parts business, R&D and future strategies, etc.)